AKG Exim Ltd Management Discussions

This Management Discussion and Analysis report has been prepared in compliance with the
requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
contains expectations and projections about the strategy for growth, product development, market
position, expenditures and financial results. Certain Statements in the Management Discussion and
analysis report are forward looking statements which involve, a number of risks and uncertainties that
could differ actual results, performance or achievements with such forward looking statements on the
basis of any subsequent development, information or events for which the Company do not bear any
responsibility.

Global economy enters a period of structural adjustments

The global economic system operational post-World War 2 is currently in the process of being reset.
The Trump Administration has interpreted its political mandate to course-correct on the sharp
increase in income and wealth inequality in the US, the atrophying of its manufacturing base, and what
it sees as misuse of multilateral institutions that it helped erect over the past 80 years. The Trump
Administration has therefore begun to make structural changes to trade, taxes, regulations,
immigration, currency and energy markets, among others. For example, it believes that existing global
trading rules do not work anymore for the US and need to be dismantled or at least meaningfully
amended, moving to bilateral agreements with partners instead of multilateral forums. However, it is
still unclear what the new rules are likely to be, and by when the consensus around them can be built.
Given US-China dominance in global trade, a prolonged conflict would have a substantial impact on
global growth.

Similarly, the "new Triffin dilemma" necessitates a periodic downward reset of the US dollar. It
highlights the risks from the country providing the global reserve currency needing to sustain a current
account deficit, and thus, over decades, accumulating unsustainable international liabilities. Prior
episodes of unilateral hikes in import tariffs, like in 1930 (Smoot-Hawley) and 1971 (the Nixon shock)
also drove similar disruptions, and triggered significant currency market volatility. Large changes in
exchange rates unsettle economies and markets.

Negotiations on these issues, and evolution of the new models of engagement are likely to be
contentious, driving a prolonged period of policy vacuum. The only restraint on the pace of this shift
seems to be market volatility - when uncertainty crosses a certain level, markets become chaotic.
Fear of chaos has driven a pull-back from overly disruptive steps a few times.

Despite partial tariff rollbacks and ongoing negotiations to reduce them, the lack of clarity is likely to
significantly slow global growth as 1) investment decisions will get postponed till visibility improves on
tariffs and exchange rates; 2) higher tariffs mean fiscal tightening, among others driving a cutback in
consumption; 3) financial conditions tighten due to uncertainty.

There can be some positive surprise for global growth if strong fiscal action materialises across Europe
and China, breaking through the local political resistance. Similarly, an end to the Russia-Ukraine
conflict can also help improve risk appetite and push energy prices lower.

GLOBAL ECONOMY

The global economy in FY 2024-25 has seen a mix of cautious optimism and a continued
uncertainty. Encouragingly, inflation has shown signs of moderation across major economies,
offering some relief after years of elevated price pressures. This easing trend, supported by more
stable commodity prices and improved supply chain dynamics, has allowed central banks, especially
in advanced economies, to hold firm on tight monetary policies without further aggressive rate
hikes. While interest rate cuts have been limited, the more predictable inflation path has helped
stabilize financial markets and laid the foundation for a gradual economic recovery.

However, this progress has been overshadowed by renewed geopolitical and trade tensions,
particularly between the United States and China. Early in the fiscal year, the U.S. upheld steep
tariffs on Chinese imports, averaging over 145%. In March 2025, U.S. also imposed a 25% duty on
all steel and aluminium products, citing national security concerns. China responded with its own
set of tariffs, some reaching 125%, triggering a sharp decline in bilateral trade and causing ripple
effects across global supply chains.

A pivotal moment came in May 2025, when both nations agreed in Geneva to a 90-day suspension
of tariffs exceeding 100%, aiming to de-escalate tensions and reopen dialogue. President Trump
reduced tariffs on Chinese goods to 30%, while China lowered its tariffs on U.S. products to 10%.
Despite this temporary truce, deeper issues remain unresolved, particularly around U.S. export
controls on advanced semiconductors and Chinas restrictions on rare earth minerals, both critical
to high-tech and automotive industries.

High-level negotiations resumed in London in June, focusing on technology transfer, export
licensing, and the broader tariff framework. Yet, the U.S. simultaneously proposed to raise steel
and aluminium tariffs to 50%, signalling that tariffs remain a key strategic tool. While the tariff pause
offers a brief reprieve, the path forward remains uncertain. Businesses worldwide continue to adapt
to a complex and evolving trade landscape, as the global economy cautiously navigates these
turbulent times.

Indias economic performance in FY 2024-25 has been characterised by a combination of strong
growth drivers and emerging challenges. Following a splendid 9.2% GDP growth in FY 2023-24, the
Indian economy is estimated to grow by 6.5% in FY 2024-25 (per the Second Advance Estimate).
Weak urban consumption, persistent food inflation, and sluggish private sector investment have
contributed to the economic slowdown. Except for agriculture, all other sectors registered lower
growth in FY 2024-25 than the previous fiscal year, with a more notable slowdown observed in
manufacturing, which is likely to have grown by just 4.3% in FY 2024-25 vis-a-vis 12.3% in FY 2023-
24.

Rising trade and tariff tensions, along with resulting financial market volatility, have sparked
concerns about a potential slowdown in global growth in the near term. While this subdued global
outlook may affect Indias growth by weakening external demand, the countrys domestic drivers,
namely, consumption and investment, remain relatively insulated from global shocks.

India is relatively better placed compared to other countries to face the vagaries of trade tension.
India is less dependent on exports as export contributes just 21% of Indias GDP as compared to
87% for Vietnam or 65% for Thailand. On the other hand, private consumption fuels the economic

growth, having a 61% share in GDP vis-a-vis 40% for China, 55% in Vietnam and Canada. India is
also better placed as compared to its regional peers if the reciprocal tariff is triggered after the 90-
day pause.

Integral to this accelerated growth trajectory and increasing economic self-sufficiency have been
significant governmental reforms and considerable capital allocated towards both physical and
digital infrastructure. Government initiatives such as Make in India and the Production-Linked
Incentive (PLI) scheme have also played a crucial role.

The services sector in India demonstrated a steady expansion of 7.2%. This growth was fuelled by
strong performance across a range of areas, including finance, property, professional services, public
administration, and defence, amongst others.

Indias economic stature continues its upward climb, with the nation now holding the position of
the worlds fifth largest economy by nominal Gross Domestic Product (GDP) and the third-largest
when assessed by purchasing power parity (PPP). Ambitious national targets have been set to
achieve a US$ 5 trillion economy by FY 2027-28 and a US$ 30 trillion economy by 2047. These
aims are to be accomplished through substantial infrastructure investments, ongoing governmental
reforms, and the widespread adoption of technological advancements. Reflecting this commitment,
the capital investment budget for the upcoming financial year (2025-26) has increased to ? 11.21
lakh crore, representing 3.1% of GDP.

The outlook for the agricultural sector has improved, supported by a forecast of an above-normal
southwest monsoon in 2025, which could boost farm incomes and help stabilise food prices. In
March, headline inflation eased to a 67-month low of 3.3%, largely due to a drop in food prices. RBI
has also reduced the interest rate by 50 basis points so far and is expected to cut more to support
growth. The manufacturing sector has also shown improvement, as indicated by a strong
manufacturing PMI of 58.2 in April 2025, which is the highest in 10 months.

Infrastructure development remains a major focus of the Indian government. The National
Infrastructure Pipeline (NIP), with investments in roads, railways, airports, and ports, is expected
to see substantial funding through 2025 and beyond. As mentioned earlier, the Union Budget for
2025-26 proposed total capital expenditure of ? 11.21 lakh crore and an effective capital
expenditure of ? 15.48 lakh crore. The budget also proposed an outlay of ? 1.5 lakh crore for 50-
year interest-free loans for states for infrastructure development.

Hence, the IMF forecasted a relatively more stable economic growth of 6.2% in 2025 and 6.3% in
2026, though it is 0.3 and 0.2 percentage points lower, respectively, than its January 2025 outlook
update.

Outlook

Indias economy is expected to grow at a rate of 6.2% in FY 2025-26. Projections indicate that by
2030, India will likely become the worlds third-largest economy, driven by investment in
infrastructure, greater private sector capital expenditure, and the expansion of financial services.
Ongoing reforms are anticipated to support this long-term economic advancement.

Several factors solidify this positive outlook, including Indias favourable demographics, increasing
capital investment, proactive government schemes, and strong consumer demand. Improved

spending in rural areas, helped by moderating inflation, further reinforces this growth trajectory.
The governments focus on capital expenditure, prudent fiscal management, and measures to boost
business and consumer confidence are creating a supportive environment for both investment and
consumption.

Programmes such as Make in India 2.0, reforms designed to improve the ease of doing business,
and the Production-Linked Incentive (PLI) scheme are intended to strengthen infrastructure,
manufacturing, and exports, positioning India as a significant player in global manufacturing. With
inflation expected to be on target by the end of this year (2025), a more accommodating monetary
policy is likely. Infrastructure development and supportive government policies will facilitate capital
formation, while rural demand will receive a boost from initiatives like the Pradhan Mantri Garib
Kalyan Anna Yojana (PMGKAY).

Indian economy

In our view, the growth slowdown in the Indian economy in fiscal 2025 was due to fiscal and
monetary tightening, much of it unintended.

There were two sets of challenges fiscally. First, the union governments fiscal deficit fell by 80 basis
points of GDP in each of fiscal 2024 and fiscal 2025. Second, while the spending was front-loaded
in fiscal 2024, it was back loaded in fiscal 2025, both due to the general elections. This created a
prolonged lull in government. Both these headwinds are now receding. Deficit in fiscal 2026 is set
to fall only 40 bps of GDP, and the spending lull is now over, with seasonal patterns back.

Second, on the monetary front, adjusted for the major merger in the banking system in fiscal 2024,
non-food credit growth fell from 16.5% in March 2024 to 10.9% year-on-year ("Y-o-Y") in March
2025.

This sharp slowdown was broad-based (i.e. not just limited to unsecured loans segment) and largely
supply-driven. It was triggered by the regulators concerns on high loan-deposit ratios (LDR) at
some banks. As banks slowed credit growth, deposit creation by banks slowed too, compounding
the weak money injection by the RBI. Furthermore, FX intervention (USD sales by the central
bank) drained durable liquidity by around 5 lakh crore, and intensified the liquidity stress, with
rates on certificates of deposit diverging substantially from the expected policy rates.

Recent steps by the RBI, like a CRR cut, bond purchases, buy-sell FX swaps, repo rate cuts,
macroprudential easing and easier LCR norms have led to conditions that should support growth
better. Inflation falling below 4% means the policy focus now is squarely on growth.

Indias economy is among the least exposed to global factors, with direct impact from initial US
reciprocal tariffs among the least in the world. There is some potential for share gains as well, as
the "China + 1" trend gets another impetus. Improving competitive metrics, like in infrastructure
and value-chain development in electronics, are likely to help. Indias services exports, particularly
in the global capability centres, continue to be robust. The structural drivers behind this -
disaggregation of global services value-chains, rapid increase in global cross-border telecom
bandwidth, and the surge in remote-working - are likely to persist. Indias share of modern services
exports is now a remarkable 8%. However, uncertainty on global growth may adversely affect some
sectors of the economy in the near-term.

Developments in the Banking system

Adjusted for a major merger in the financial system, banking system non-food credit grew 10.9%
Y-o-Y as of 4 April, 2025, while deposit growth was up 10.1% Y-o-Y.

Credit growth continues to be dominated by services (this includes credit to NBFCs), followed by
the retail segment. While credit to agriculture is strong, industry segment growth has stayed
subdued. Within industry, growth in MSMEs continues to be faster than large corporates.

Regulators have rolled back risk weights on bank lending to NBFCs and MFIs which should
contribute to the overall banking system growth going forward.

The banking system remains well capitalized to meet the needs of a growing economy, with early
signs of growth in private investments, and credit risks remain subdued.

Prospects for fiscal 2026

A revival in the domestic real-estate market, and in general the reversal of several headwinds that
slowed the economy last year should be supportive of credit demand. With liquidity conditions
easing supply, and transmission of rate cuts underway, credit growth should pick up from current
levels. The high uncertainty emanating from US trade policies and financial market shocks may push
out corporate investments and keep their loan demand weak.

Medium term Outlook

Over the past decade, consensus estimates for Indias trend growth rate declined from around 8%
from fiscal 2007 to fiscal 2012 to the current range of 6-6.5%. COVID cast new shadows on
potential trend growth. We believe the growth slowdown in the previous decade was due to
cyclical factors, in particular the real-estate downturn, and trend growth remains above 7%. This
consists of: a) 1% annual growth in labour input, as the number of workers of working age continues
to expand, and female labour force participation and hours worked should rise; b) 2% to 2.5%
annual growth in total-factor-productivity due to the state still willingly ceding space to the private
sector, strong productivity growth in services, improvement in macro (highways, railways) as well
as micro-infrastructure (like piped water, internet, electricity and cooking gas connections), and
technology transfer emanating from the surge in global capability centres; and c) 4%-plus growth in
capital formation due to a cyclical recovery in real-estate and private sector capex. We expect
inflation to average 4% in fiscal 2026 as the economy remains nearly a year behind its pre-pandemic
path, keeping labour in surplus.

With nominal GDP growth likely to average 11% annually, and the formal economy expected to
grow faster, system bank credit growth can be in the low to mid-teens.

METALS AND STEELS:

India holds a fair advantage in production and conversion costs in steel and alumina. Its strategic
location enables export opportunities to develop as well as fast-developing Asian markets.

Minerals are precious natural resources that serve as essential raw materials for fundamental
industries, so the growth of the mining industry is essential for the overall industrial development of a
nation. The vast resources of numerous metallic and non-metallic minerals that India is endowed with
serve as a foundation for the expansion and advancement of the nations mining industry. India is largely

self-sufficient in metallic minerals including bauxite, chromite, iron ore, and lignite as well as mineral
fuels like coal and lignite. The industry has the potential to significantly impact GDP growth, foreign
exchange earnings, and give end-use industries like building, infrastructure, automotive, and electricity,
among others, a competitive edge by obtaining essential raw materials at reasonable rates.

Rise in infrastructure development and automotive production are driving growth. Power and cement
industries are also aiding growth for the sector. Demand for iron and steel is set to continue given the
strong growth expectations for the residential and commercial building industry.

Market Size

• In April-December 2024 period, the production of crude steel stood at 112.011 MT and that
of finished steel was 107.192 MT.

• During FY25 (April-December), export of Finished Steel stood at 3.600 MT. India was a net
importer of finished steel with overall trade deficit of 3.824 MT

• India is expected to surpass its steel production capacity target of 300 MT by 2030, reaching
an estimated 330 MT.

• In CY25 January-April, the production of crude steel stood at 53.2 MT and Indias finished
steel imports fell 11.3% year on year in April to 0.5 million metric tons following a decline in
shipments from China and Japan.

• Indias iron ore production increased by 0.18% to 277.83 million metric tonnes (MMT) during
FY25 compared to 275 MMT in the same period of FY24.

• Production of metallic and non-metallic minerals

• India is the second-largest producer of aluminium globally. The production of primary
aluminium reached 42 lakh tons in FY25 as compared to 41.5 lakh tons in the previous year.
In FY25, mineral production is estimated at Rs. 1,41,061 crores (US$ 16.40 billion).

• GVA from mining and quarrying stood at Rs. 3,47,271 crore (US$ 40.69 billion) in FY25, as
per the first revised estimates.

• The construction sectors Gross Value Added (GVA) at current prices was estimated at Rs.
15,59,160 crore (US$ 179.5 billion) for FY25* against Rs. 14,36,081 crore (US$ 165.3 billion)
for FY24 as per the provisional estimates.

• The index of mineral production of the mining and quarrying sector for FY25 was at 124.9,
3.1% lower compared to FY24, which was 128.9.

Investments/ Developments

Some of the investments/ developments in the Metals & Mining sector in the recent past are
as follows:

• Between April 2000-December 2024, FDI inflows in the metallurgical industry stood
at Rs. 1,10,062 crore (US$ 18.06 billion), followed by the mining Rs. 21,525 crore (US$
3.50 billion), diamond & gold ornaments Rs. 8,905 crore (US$ 1.04 billion), and coal
production Rs. 119 crore (US$ 27.73 million).

• In January 2025, the Ministry of Steel has introduced the PLI Scheme 1.1 for specialty
steel, covering five product categories, which aligns with the existing PLI Scheme. This
initiative aims to encourage greater participation in response to industry requests for
relaxation. The PLI Scheme 1.1 will be open for applications from January 6 to January
31,2025, and will be implemented from FY26 to FY30.

• India and Kazakhstan have launched IREUK Titanium Limited, a joint venture to
produce Titanium Slag in India, marking Indias first venture in Central Asia. The
company will convert low-grade Ilmenite into high-grade titanium feedstock, aiming to
enhance the titanium value chain in India and create jobs in Odisha.

• As per data from the Ministry of Statistics and Programme Implementation (MOSPI),
Indias mining GDP increased from Rs. 76,877 crore (US$ 9.25 billion) in the third
quarter of FY23 to Rs. 82,680 crore (US$ 9.95 billion) in the third quarter of FY24.

• Southeastern Coalfields Limited (SECL), a subsidiary of Coal India in Chhattisgarh, has
reached a milestone with its Gevra and Kusmunda coal mines ranking 2nd and 4th on
WorldAtlas.coms list of the worlds largest coal mines. Located in Korba district,
these mines together produce over 100 million tons of coal annually, accounting for
about 10% of Indias total coal production.

• India is experiencing a construction boom driven by a growing housing economy and
significant government infrastructure investments. The country is projected to
become the third-largest construction market in the world, following China and the
US, by 2025.

• In January 2024, India and Argentina signed an agreement to undertake the exploration
and development of five lithium blocks, enhancing Indias efforts in sourcing lithium.
Khanij Bidesh India Limited (KABIL) has obtained exploration and exclusivity right for
these five blocks.

• In February 2024, an MoU has been signed between India and the Republic of Cote
dlvoire, for collaboration in field of Geology and Mineral Resources.

• In March 2024, Karnataka and Rajasthan initiated the auction of Exploration Licences
(EL) for critical and deep-seated minerals, marking the first such auction in India. Under
the amended Mines and Minerals (Development and Regulation) Act, 1957, introduced
by the MMDR Amendment Act, 2023, 29 critical minerals are eligible for exploration
and mining concessions.

• In January 2023, Vedanta announced that its board had approved the sale of its
international zinc assets in South Africa and Namibia to subsidiary Hindustan Zinc
(HZL) for US$ 2.98 billion.

• In February 2023, Tata Steel and Central Building Research Institute (CBRI), a
constituent of the Council of Scientific and Industrial Research (CSIR), signed an MoU
to collaborate on research, academic growth, and sustainable solutions in mining.

• In February 2023, ArcelorMittal - Nippon Steel is investing Rs. 60,000 crore (US$ 7.3
billion) to expand its steelmaking capacity in Hazira to 15MT a year from 9MT.

• In February 2023, NMDC signed an agreement for collaborative research with CSIR-
IMMT, Bhubaneswar on "Feasibility Studies for Preparation of Fused Magnesia from
Kimberlite Tailings" at its Head Office in Hyderabad.

• In February 2023, JSW Group announced to build a steel plant in Andhra Pradeshs
YSR Kadapa district with an investment of Rs. 8,800 crore (US$ 1 billion).

• In February 2023, Essar Capital Limited, investment manager of Essar Global Fund
Limited, announced to set up steel plants in Odisha and a facility to import liquefied
natural gas (LNG) at Hazira in Gujarat.

• In March 2023, MOU with detailed collaborative framework was between KABIL,
India, and Critical Mineral Office (CMO), Department of Industry, Science and
Resources (DISER), Govt. of Australia for carrying out joint due diligence and further
joint investment in Li & Co mineral assets of Australia.

• In July 2023, the Union Cabinet approved amendments to the Mines and Minerals
(Development and Regulation) Act-1957 to allow the mining of lithium and other
minerals.

• On August 3, 2023, the Rajya Sabha passed the Offshore Areas Mineral (Development
and Regulation) Amendment Bill, 2023 which seeks to make amendments to the
Offshore Areas Mineral (Development and Regulation) Act, 2002 (‘OAMDR Act). The
Bill was passed by Lok Sabha on August 1,2023.

• In July 2022, Hindalco Industries Limited has signed an MoU with Phinergy and IOC
Phinergy Private Limited (IOP) on R&D and pilot production of aluminium plates for
Aluminium-Air batteries, and recycling of aluminium, after usage in these batteries.

• In August 2022, Tata Steel signed a MoU with the Government of Punjab for setting
up a 0.75 MTPA long products steel plant with a scrap-based electric arc furnace.

• In September 2022, exports of mica, coal & other ores and minerals including
processed minerals stood at US$ 426.32 million exhibiting growth of 7.31% as
compared to September 2021.

• In October 2022, Welspun Metallics Limited has forayed into Steel manufacturing as a
part of the companys overall business growth and diversification strategy by launching
a state-of-the-art Greenfield manufacturing facility in Anjar, Gujarat.

• In October 2022, Coal India Limited (CIL) signed a MoU with Rajasthan Rajya Vidyut
Utpadan Nigam Limited (RVUNL), for setting up 1,190 MW solar power project

• Coal production from captive mines increased by 18.67% y-o-y in FY24 (April-
September 2023) and contributed 14.96% to the total coal production.

• Innovative mineral exploration activities using state-of-the-art technology by
Geological Survey of India (GSI), stepped up efforts by Khanij Bidesh India Limited
(KABIL) to source strategic minerals from countries like Australia, Argentina, and
Chile.

• Three Indian state-run companies, National Aluminium Co Ltd, Hindustan Copper Ltd
and Mineral Exploration Corp formed a joint venture to buy mining assets overseas
that have minerals such as lithium and cobalt, which are used in the manufacture of
batteries for electric vehicles.

• As per data from the Ministry of Statistics and Programme Implementation (MOSPI),
Indias mining GDP increased from Rs. 76,877 crore (US$ 9.25 billion) in the third
quarter of FY23 to Rs. 82,680 crore (US$ 9.95 billion) in the third quarter of FY24.

• In FY23, Vedantas aluminium division will focus on backward integration and will put
two of its mines in Odisha into production.

• Iron and steel imports stood at US$ 14.17 billion during April-December 2023.

• In FY24 (until January 2024), the combined index of eight core industries stood at
156.0 driven by the production of coal, refinery products, fertilizers, steel, electricity,
and cement industries.

• NMDCs cumulative iron ore production (April-January FY24) stood at 36.32 MT as
compared to 31.14 MT (April-January FY23).

• As of January 2024, Indias total installed electricity generation capacity stood at 429.96
GW.

• Vedanta Limited is planning a US$ 20 billion investment across its operations, including
increase silver production and steel capacity.

Government Initiatives

The Government of India has adopted few initiatives in the recent past, some of these are as
follows:

• In the Union Budget 2025-26, capital investment outlay for infrastructure is being
increased by 11.1% to Rs. 11.2 lakh crore (US$ 129.0 billion). To encourage higher
private participation, the government has proposed various measures.

• In February 2024, the Union Cabinet approved the amendment to the Mines and
Minerals (Development and Regulation) Act,1957 specifying royalty rates for 12 critical
minerals, thus completing the rationalization process for all 24 strategic minerals. This

move aims to streamline the mining sector and auction processes, aligning with recent
amendments to the MMDR Amendment Act, 2023.

• In December 2023, the Ministry of Mines proposed capping performance security and
upfront amounts for mining critical minerals to attract more bidders. Currently based
on a percentage of the Value of Estimated Resources (VER), the move aims to reduce
barriers to participation in auctions and expedite the process for mining leases.

• In October 2023, the Union Cabinet approved the amendment of the Second Schedule
of the Mines and Minerals (Development and Regulation) Act, 1957, specifying royalty
rates for three critical minerals: Lithium, Niobium, and Rare Earth Elements (REEs)
paving the way for the auctioning of blocks for these minerals, as outlined in the MMDR
Amendment Act, 2023.

• The government plans to monetize assets worth Rs. 28,727 crore (US$ 3.68 billion)
in the mining sector over 2022-25.

• In 2022, PLI Scheme for domestic production of specialty steel has been approved with
an outlay of Rs. 6,322 crore (US$ 762.4 million) by the Cabinet.

• Import duty on Anthracite/Pulverized Coal Injection (PCI) coal, Coke, and Semi-coke
and Ferro-Nickel were reduced to zero.

• Export duty on Iron ores/ concentrates and iron ore pellets was raised to 50% and
45%, respectively.

• In addition, 15% export duty was imposed on pig iron and several steel products.

• District Mineral Foundation (DMF) has been established in 622 districts of 23 States
and a total of Rs. 71,128.71 crore (US$ 8.5 billion) has been collected till October
2022 under DMF.

• In November 2022, the government removed export duties on steel and stainless steel
to strengthen the nations steel sector and allow it to firmly establish its position in
the global market.

• The government plans to monetise assets worth Rs. 28,727 crore (US$ 3.68 billion)
in the mining sector over 2022-25.

• The Ministry of Mines of the Government of India has signed MoUs with different
nations.

• The Ministry of Mines notified the Mineral Conservation and Development
(Amendment) Rules in November 2021 to provide rules regarding conservation of
minerals, systematic and scientific mining, and development of minerals in the country
for environment protection.

• Steel Authority of India Ltd. (SAIL) and Central Public Sector Enterprises (CPSEs),
under the Ministry of Steel, supplied 48,200 tonnes of steel for the Purvanchal
Expressway, which was inaugurated by Prime Minister Narendra Modi on November
16, 2021.

• The National Steel Policy aims to boost per capita steel consumption to 160 kgs by
2030-31. The government has a fixed objective of increasing rural consumption of steel
from the current 19.6 kgs per capita to 38 kgs per capita by 2030-31.

https://www.ibef.org/industry/metals-and-mining

OUTLOOK

Our Company is in the Line of Business of Import/ Export or Trading of following products and also
deals in Engineering / Technical Consultancy or Indenting / Commission or Business Consulting
Services of:

1. Metal Scrap - The Company offers a wide range of scrap metals viz. HMS (Heavy
Melting Scrap), aluminum scrap, stainless steel scrap, copper scrap, brass scrap, etc.

The company also deals in ferrous Scrap, non-ferrous Scrap and reusable items. It
procures metal scrap originating from USA, West African and European countries,
and sells these products in the domestic market all over India.

2. Petrochemicals - The Company also operates in the trading, wholesaling, distribution
and indenting business of base oil variants to refineries along with supply of
petrochemicals to industries. The petroleum products traded / distributed by the
Company are Group I, II and III variants for automobiles lubricants and different
industrial purposes, Granular & Formed Sulphur used in phosphate based industrial
and consumer industry sectors and Aromatics - Benzene, Toluene.

We have developed a sustainability mission for our company which can be briefed in three words
(reduce-reuse-recycle).

BUSINESS OVERVIEW

The total standalone turnover including other income for the year 2024-25 stood at Rs. 6983.72 Lacs
as compared to Rs. 10430.75 Lacs for the year 2023-24. Total consolidated turnover of Rs. 13297.48
lacs during the year under review as against the consolidated turnover of Rs. 18440.76 Lacs in the last
year 2023-24.

MARKETING

The Company has set up a good marketing team.

INTERNAL CONTROL

The Company has an internal control system, commensurate with the size of its operations. Adequate
records and documents were maintained as required by laws. The Companys audit Committee
reviewed the internal control system. All efforts are being made to make the internal control systems
more effective.

CONSOLIDATED SEGMENT WISE REPORTING

During the year under review, Company has achieved all sales under Segment B i.e., Trading only.
Name of the segments dealed by the Company during the year 2024-25:

1. Segment A: Manufacturing (Closed Operations) w.e.f December, 2023

2. Segment B: Trading

RISKS AND CONCERNS

In any business, risks and prospects are inseparable. As a responsible management, the Companys
principal endeavor is to maximize returns. The Company continues to take all steps necessary to
minimize losses through detailed studies and interaction with experts.

CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives,
projections, estimates, expectations or predictions are "forward-looking statements" within the
meaning of applicable securities laws and regulations. Actual results could differ materially from those
expressed or implied. Important factors that could make a difference to the Companys operations
include global and Indian demand-supply conditions, feedstock availability and prices, cyclical demand

and pricing in the Companys principal markets, changes in Government regulations, tax regimes,
economic developments within India and the countries within which the Company conducts business
and other factors such as litigation and labour negotiations.

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed all the treatments in the Financial Statements as per the prescribed
Accounting Standards.

By Order of the Board of Directors

For AKG Exim Limited

 

Sd/-

MAHIMA GOEL

MANAGING DIRECTOR

DIN:02205003

 

Place: Gurugram

Date: 13.08.2025